133k views
4 votes
Suppose the mean income of firms in the industry for a year is 95 million dollars with a standard deviation of 11 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 114 million dollars

User Zasz
by
8.8k points

1 Answer

2 votes

Answer:

95.73%

Explanation:

Given data:

mean μ= 95

standard deviation, σ = 11

to calculate, the probability that a randomly selected firm will earn less than 114 million dollars;

Use normal distribution formula


P(X<114)=P(Z<(X-\mu)/(\sigma) )

Substitute the required values in the above equation;


P(X<114)=P(Z<(114-95)/(11) )\\P(X<114)=P(Z<1.7272)\\P(X<114)=0.9573

Therefore, the probability that a randomly selected firm will earn less than 114 million dollars = 95.73%

User Liorko
by
8.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories